By BLOOMBERG
Verizon Communications Inc has expressed interest in acquiring wireless carrier Wind Mobile, a move that would let the leading US mobile-phone service expand into Canada, three people familiar with the matter said.
Wind Mobile also has been approached by suitors from Canada and elsewhere, said two of the people, who asked not to be named because the process isn’t public.
Verizon’s interest comes five years after the Canadian government began efforts to stimulate competition in the wireless sector with a 2008 spectrum auction. Wind Mobile and fellow new entrants Mobilicity and Public Mobile Inc bought spectrum set aside for them in that auction. Yet the three have struggled against Rogers Communications Inc, BCE Inc and Telus Corp, which control about 90% of Canada’s mobile-phone market.
Telus agreed in May to pay about US$373 million (RM1.2 billion) to buy Mobilicity before its bid was blocked by the government on June 4. Public Mobile said on June 6 it had been acquired by Thomvest Seed Capital Inc., an investment vehicle of Peter Thomson, and Cartesian Capital, a New York-based private-equity firm, for an undisclosed price. Thomson is the brother of David Thomson, whose US$24.6 billion net worth makes him the world’s 23rd-richest person, according to the Bloomberg Billionaires Index.
Wind Mobile, based in Toronto, has more than 600,000 subscribers, Tony Lacavera, the company’s founder and chief executive officer, said earlier this year. Alexandra Maxwell, a spokeswoman for Wind Mobile, declined to comment yesterday on the Verizon report, as did Bob Varettoni, a spokesman for New York-based Verizon.
Blocked Purchase
Verizon seriously began to consider a bid for Wind Mobile following the decision by Canadian Industry Minister Christian Paradis to block Telus’s purchase of Mobilicity, one of the people said. Paradis said at the time that he wouldn’t allow any of the incumbents to bid for spectrum owned by new entrants until a moratorium on such transfers ends next year.
The prospect of bidding for Wind Mobile without having to compete with one of Canada’s three biggest carriers further encouraged Verizon, the person said.
Verizon’s interest in entering the Canadian market was reported earlier yesterday by the Globe and Mail.
– Hugo Miller, Scott Moritz and Serena Saitto
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